1. District Planning And Advisory Committee Budget and Financial Overview Tuesday, May 20, 2014

2. Despite funding cuts during the 2011 legislative session GPISD has continued to be financial healthy Contributors to financial success:  Growth in the Taxable Value of Property as set by Harris County Appraisal District  The successful Tax Ratification Election held in September 2012  Continued growth in enrollment and Average Daily Attendance Financial Health

3. Growth in Taxable Value of Property: Increasing Local Revenue * Based on Certified Estimated Values as of April 30, 2014

4.  The District’s tax rate is comprised of 2 components:  Maintenance and Operations Rate  Debt Services Rate  In September 2012, Voters approved a TRE which moved 6 cents from the Debt Service Rate to the Maintenance and Operations Rate  No Overall Increase in the Tax Rate  Ability to collect 6 additional cents combined with the increases in the Taxable Value of Property has substantially increased the District’s Local Revenue from Tax Collections  The increase in Local Revenue has more than offset the loss from reductions in State Aid 2012 Tax Ratification Election: Increasing Local Revenue

5. Growth in Student Enrollment and Average Daily Attendance: Moderating State Aid

6.  Funding for Maintenance and Capital Projects  New Teacher and Student Computers, Data Projectors, and iPads  Purchased 10 additional Buses  Implemented Security System and Improved Video Camera systems at High Schools  Provide funding for Textbooks and Instructional Materials  Provided Salary increases for 2013-14 and 2014-15 Reaping the Benefits of Good Financial Health

7. Budget Projections for 2014-15

8.  State Funding  2011 Legislative Session - State funding was reduced by $5 Billion  2013Legislative Session - State reinstate $3.9 Billion for the 2013-14 and 2014-15 School Years  New Teacher Retirement System Tax Paid by Districts  Estimated Cost: $1.4 million  One time only funding assistance from the State  Board Adoption of the 2014-15 Compensation Plan  Majority of Teachers/Nurses will receive $1,875 salary increase  Beginning Teacher salary moves to $50,000  3% General Pay Increase calculated using Pay Grade Midpoints  Estimated Cost: $7.8 million Major Factors Impacting the 2014-15 Budget Planning

9. Future of School Funding in Texas

10.  Approximately 2/3 rd of the districts joined in a lawsuit against the State  Trial was held Fall 2012  On February 4, 2013 the Current State Funding system was ruled Unconstitutional  Judge heard new testimony from both sides in early 2014 to consider new evidence based on the results of the 2013 Legislative session  Waiting on Judge’s decision to affirm the previous Unconstitutional ruling or not  If Judge affirms Unconstitutional verdict, State is expected to appeal the decision  Appeal process could last up to a year School Finance Trial Districts Vs. State of Texas

11. Questions or want to know more? Sonya George, CPA, CTSBO Chief Financial Officer (832) 386-1205 sgeorge@galenaparkisd.com